Uber drivers in the U.S. will be able to offer services with Tesla Inc. electric vehicles rented from Hertz Global Holdings Inc. from Nov. 1.
Hertz also said it signed up Carvana Co. to sell off rental vehicles it no longer wants.
Taken together, the deals represent a trifecta of aggressive and innovative initiatives with the potential to upend the car-rental business and hasten the transition to greener fuel sources. The car order on Monday, the largest-ever for EVs at $4.2 billion, was such as watershed moment that it propelled Tesla Inc.’s valuation past $1 trillion.
"One of Uber's most important constituencies is their drivers," Mark Fields, Hertz's interim CEO, told Automotive News, "so the benefit for them is they get to drive a terrific vehicle. At the same time it's an opportunity for higher earnings potential.
Fields, the former CEO of Ford Motor Co., told Automotive News that Hertz's program allows Uber to rent a Tesla on a weekly basis. The program "covers insurance and basic maintenance and we bring Hertz's core capability of managing large fleets, so we feel it's a win-win for Uber and Hertz."